Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government of Maharashtra, who is steering this complex urban renewal. In this report, CW explores the vision, challenges and path forward for one of India’s most ambitious redevelopment efforts. A historic reset for Mumbai Dharavi began as a humble fishing village in the late 1800s. Over the decades, it evolved, shaped by waves of workers and migrants seeking a foothold in a rapidly growing Mumbai. What emerged was not just one of the world’s largest informal settlements, but a closely knit community of nearly a million people. Life in Dharavi is defined by contrasts. Cramped living conditions and inadequate infrastructure sit alongside a vibrant informal economy – thousands of small businesses, workshops and home-based enterprises that have withstood the test of time. Beneath the visible challenges lies a spirit of resilience and solidarity that has quietly shaped Mumbai’s broader urban story. Why renewal is a necessity Living in Dharavi means enduring daily hardships. Broken roads, leaking pipelines and overflowing drains are a part of routine life, posing serious health and hygiene challenges. The consequences of this chronic neglect are visible in stark statistics: media reports indicate that life expectancy in Dharavi is nearly 10 years lower than the city’s average. Access to even basic necessities, such as clean public toilets, remains a daily struggle for many residents in one of Mumbai’s most densely populated areas. The Dharavi Redevelopment Project (DRP), however, is more than just a large-scale, real-estate venture. It represents a historic reset for one of Mumbai’s most iconic yet underserved urban landscapes. With Adani Properties Pvt Ltd (APPL) appointed as the lead partner and the formation of Navbharat Mega Developers Pvt Ltd (NMDPL) – a JV between the Government of Maharashtra and the Adani Group – the project has moved beyond vision and into the phase of active execution. “This is a once-in-a-lifetime opportunity, not just for Dharavi but for Mumbai as a city,” remarks SVR Srinivas. “It’s not just a project. It’s a movement.” Building a city within a city According to Srinivas, the initiative has three key components: Housing: Not just for eligible residents, but also for those usually left out in other Slum Rehabilitation Authority (SRA) projects, ensuring no one is left homeless. Physical infrastructure: Building proper roads, sewage systems, stormwater drains and water supply lines, and providing consistent electricity. “Many roads are either too narrow or non-existent,” says Srinivas. “Civic amenities are severely lacking.” Social infrastructure: Setting up schools, colleges, training centres, open spaces, community areas and respectfully accommodating Dharavi’s rich mix of temples, mosques, churches and other local landmarks. Dharavi is also home to India’s largest informal recycling sector, alongside numerous small-scale industries and commercial units. These, too, will be carefully rehabilitated as part of the plan. “We’re not just redeveloping a slum – we’re building a city within a city,” says Srinivas. “And we’re fully aware of the complexity we are dealing with.” Housing for All The DRP aims to transform Asia’s largest and India’s most unique slum by offering over 1 million residents a life of dignity through better living conditions and sustainable ecosystems. As part of the new DRP, all eligible residents will be provided free housing within Dharavi itself. According to the norms set by the SRA, individuals who were residing in Dharavi as of January 1, 2000, are deemed eligible. Ground-floor residents who settled between January 1, 2000 and January 1, 2011 are eligible for affordable housing (300 sq ft) outside Dharavi but within the Mumbai Metropolitan Region (MMR) as rental housing with hire-purchase rights. Under the provisions of Maharashtra’s Slum Rehabilitation Act, each eligible resident is entitled to one rehabilitation unit, regardless of how many tenements they own. Notably, the size of these units will be 350 sq ft – a significant upgrade from the standard 300 sq ft units typically offered in other slum redevelopment schemes. What makes this project unique is how it addresses ineligible residents, a group often excluded in other SRA projects. This includes people living on upper floors, mezzanine levels, or those who moved in after 2011. Instead of evicting them, the government will offer rental housing outside Dharavi but within Mumbai, mainly in the eastern suburbs. “These homes will be provided on a rental-cum-ownership model, where the rent and final purchase cost are both set by the government to keep them affordable,” highlights Srinivas. “Importantly, payments will be made directly to the government, not the private developer.” This makes Dharavi India’s first slum project to truly follow a ‘Housing for All’ approach, ensuring even the ineligible are not left without a roof. Post renewal Buildings will be maintained by the developer for 10 years post rehabilitation, thereby ensuring zero financial burdens on residents. Ten per cent of the built-up area across all townships will be developed commercially, creating a permanent income source for housing societies. In addition, a statutory corpus fund per tenement will be deposited by the developer to the competent authority. Modern townships with wide roads, green spaces, healthcare, educational institutions and sports facilities will replace vertical slums. Parks, playgrounds, a waterfront corniche and sporting facilities will provide recreational spaces for families. Residents will have access to retail shops, malls, restaurants and movie halls within the township. Innovative district cooling technology will be available on a pay-per-use basis for resident comfort. Proper drainage and sanitation will significantly reduce health issues caused by unhygienic conditions. From informal to formal transition At the core of this transformation is formalisation – of land ownership, housing and commercial activity. Dharavi, historically a dense network of informal housing and unregistered businesses, is now being surveyed, mapped and tagged for integration into the formal city grid. “The informal economy thrives in Dharavi, but it is trapped at a low level of liquidity and scalability,” Srinivas points out. “Without legal entitlements, 99.9 per cent of businesses here can’t grow. Banks won’t finance them. That will change.” With formal housing, recognised commercial spaces and entitlements in place, access to institutional finance will follow. “Once businesses are recognised by financial institutions, the sky is the limit,” he adds, underlining that economic expansion – not just infrastructure –is the real transformation. Key industries like leather, recycling, garments, pottery and food manufacturing will be protected and supported with government benefits and infrastructure upgrades. All eligible commercial tenement holders (ground-floor structures as of January 1, 2000) will get up to 225 sq ft of space or their actual area free of cost. Extra space beyond 225 sq ft will be charged at a government-approved construction rate on a telescopic reduction basis. SGST reimbursements for five years and investment-friendly initiatives will boost businesses and revenue generation. Parallel progress While most large-scale infrastructure projects follow linear timelines, the DRP is decidedly parallel in its implementation. Unlike traditional redevelopment timelines that move step by step, Dharavi’s renewal is operating on multiple tracks. “We’re not waiting for the entire survey to finish to begin construction,” clarifies Srinivas. “Construction on the railway land parcel has already started. Planning is on. We’re layering components, such as survey quality checks, eligibility processes and grievance mechanisms, alongside physical execution.” The digitised survey, conducted using tablets and real-time data logging, is key to ensuring accuracy, accountability and efficiency. Drones, Lidar and advanced digital tools are used for digitally mapping the entire Dharavi Notified Area (DNA). Building for the future On the environmental front, the DRP is aiming for Platinum-rated green construction and 100 per cent waste recycling. While net-zero may not be feasible in a dense urban cluster like Mumbai, the target is clear: zero waste, maximum reuse, and integration of modern infrastructure for water conservation and sewerage management. “We’re aiming for the best global benchmarks in green urban design,” says Srinivas. “From rejuvenating the Mithi River to stormwater drains and sewage systems, every layer of urban sustainability is being addressed.” On the tech front, digital twins, 5D BIM modelling and real-time project monitoring are already in use. “The survey itself is digitised. Planning and construction will be monitored using cost-time integrated BIM systems.” Grievances are not roadblocks One of the project's most carefully considered aspects is resident engagement and conflict resolution. Transparency starts with eligibility. “We’re not doing anything behind closed doors,” affirms Srinivas. “Once eligibility is assessed by a competent government authority, the results will be publicly displayed.” This level of transparency is unprecedented in slum redevelopment projects. Residents will have the opportunity to submit objections or suggestions, and individual hearings will be conducted to address these inputs. If any corrections are warranted, they will be made and republished, ensuring that the entire process remains visible and participative. For long-term accountability, the SPV has introduced a multi-tier grievance redressal structure, including a local officer review; a Grievance Redressal Committee made up of independent government officers; and an Apex Grievance Committee for escalated appeals. “This way, even if someone feels wronged by a local officer, they can appeal. It’s about creating a sense of procedural justice and inclusivity.” Not just rehousing, but rebuilding livelihoods Beyond the physical relocation, the DRP is also placing heavy emphasis on long-term economic integration. Apart from rehousing residential units, existing commercial setups will be formalised. Additional space for ancillary units will be created to support organic business growth. “There’s also a plan for a new commercial district in the southern segment,” reveals Srinivas. “Its proximity to BKC is a strategic advantage. Dharavi’s economy won’t just be preserved – it will be expanded and formalised.” The road ahead With a target to wrap up survey work by the end of May 2025 and parallel tracks for construction already in motion, this mega urban renewal project is finally seeing momentum after years of political and procedural gridlock. As Dharavi rises, so does the hope that this urban transformation will become a benchmark for redevelopment models across India and beyond. “This is about the future generations of Mumbai,” reflects Srinivas. “We’re not just building homes. We’re building a city within a city – one that is green, formalised, economically vibrant and socially inclusive.” 5 things to know The project aims to modernise infrastructure while preserving Dharavi’s socioeconomic fabric. The master plan will be ready by end-May, followed by submission to authorities and public feedback. Developed by Navbharat Mega Developers, a JV between the Government of Maharashtra and the Adani Group. The project includes 10 crore sq ft for rehabilitation and 14 crore sq ft for sale, with Rs 250 billion of the Rs 3 trillion investment dedicated to rehabilitation units. All Dharavi residents will be rehabilitated – eligible ones in 350 sq ft homes within Dharavi and others in 300 sq ft rental housing outside under a hire-purchase model. All land parcels allotted for the project, including land in the Dharavi Notified Area (DNA), will remain with DRP/SRA – GoM. India’s largest urban renewal in numbers Number of tenements to be rehabilitated: Around 1.2 lakh (120,000) Number of tenements surveyed: Over 75,000 Number of tenements numbered: Over 96,000 Lane recce completed: Over 100,000 tenements Project cost: Estimated at Rs 2-3 trillion Projected investment: Rs 3 trillion Land area (DNA): Approx 620 acre Adani Group's bid: Rs 50.69 billion Construction planned: 10 crore sq ft of rehabilitation structures and 14 crore sq ft of saleable property Projected completion time: 7 years (rehabilitation component) Number of residents: Around 8 lakh. A sentiment shift: From resistance to trust The emotional shift on the ground is perhaps the most telling sign of progress. “When we used to conduct bid meetings earlier, there would be protests outside our Dharavi office,” shares Srinivas. “This time, there was not a single protest.” While concerns still exist, particularly from non-slum renewal components about tenement sizes, the mood has notably shifted. “Even those who raised issues ended by saying, ‘We want this project to happen’. That’s a big deal.” Financial structure and funding model The equity investment in the project is Rs 5 billion, of which 80 per cent is invested by the Adani Group and balance 20 per cent is invested by the Government of Maharashtra. The Adani Group will invest balance funds in the form of convertible security in line with the tender. There are no government grants, loans or financial incentives except concessions on certain construction charges. The buildings will be maintained by the developer (NMDPL) for 10 years post rehabilitation, thereby ensuring zero financial burden on residents. Moreover, 10 per cent of the built-up area across all townships will be developed commercially, creating a permanent income source for all housing societies. Additionally, a statutory corpus fund per tenement will be deposited by the developer to the competent authority. “The state government is committed to its promise of housing for all. Those ineligible for housing will be provided rental houses for 12 years. After the completion of 12 years, it will be transferred to their names in accordance with norms and procedures,” CM Devendra Fadnavis said in the Maharashtra Assembly in March 2025. A new lease of life for city cores Gulam Zia, Senior Executive Director – Research, Advisory, Infrastructure, and Valuation, Knight Frank India, shares how the Dharavi Redevelopment project could become a model for inner-city revitalisation across India: “Many Indian cities face a common challenge—while new growth centres have emerged on their peripheries, older urban cores have remained underdeveloped. In many cases, these inner-city areas, whether informal settlements or simply neglected precincts, have not kept pace with urban progress. The Dharavi Redevelopment Project offers a compelling solution: it retains the social and cultural fabric of the area while introducing planned, high-rise developments that reflect modern urban aspirations. The master plan’s balanced approach—reviving legacy zones with contemporary infrastructure—could well serve as a blueprint for other historic cities like Delhi, Lucknow, or Hyderabad. Dharavi’s transformation is poised to become a national model for inclusive, inner-city revitalisation.” A landmark initiative Dr Niranjan Hiranandani – Chairman – Hiranandani Group and NAREDCO calls the Dharavi project a landmark initiative set to redefine Mumbai’s urban landscape, boost economic growth, and uplift millions. He opines that “The Dharavi Redevelopment Project marks a transformative step towards urban transformation. The replacement of informal settlements with well-planned, high-quality housing, reliable civic utilities, and an infrastructure reboot will breathe new life into residents. This ambitious initiative not only aims to improve thousands' living standards but also sets a precedent for addressing Mumbai's widespread informal housing challenges. Industry stakeholders view such projects as pivotal to reshaping Mumbai's urban landscape. The Dharavi redevelopment project is expected to attract a total investment of around Rs 3 trillion. This includes rehabilitation work, infrastructure development, and the construction of rehabilitation units and saleable properties. This investment influx, policy regime and strategic development are expected to generate demand for a large workforce, including construction workers, engineers, architects, urban planners, suppliers, PropTech players, co-developers and other professionals. The multiplier effect of this mega-redevelopment will augment the growth rate of 270 allied industries of the real estate sector and contribute to Mumbai's economic resurgence. Moreover, Dharavi is just the beginning. Mumbai is home to several other informal settlements with immense redevelopment potential under varied development models. Currently, Mumbai has 2,583 slum clusters, with around 1.2 million structures. These clusters are located across the city, covering roughly 24 per cent of Mumbai's area. It is also estimated that around 50 per cent of Mumbai's 12 million inhabitants live in informal settlements, referred to as ‘slums’. Hence, Dharavi's redevelopment is a step in the right direction to redefine Mumbai's urban living landscape and foster it as a more inclusive and sustainable city. The State Government's proactive approach to formulating policies and roadmaps to make Mumbai slum-free reflects a visionary commitment to urban transformation. This initiative will not only revamp the city's physical infrastructure but also strengthen its global economic standing, positioning Mumbai as a world-class metropolis. The success of Dharavi slum redevelopment will stand as a global testimonial for future urban rebuilding.”